Lennar Corp beats Wall Street estimates in the fiscal first quarter
- Lennar Corp beats Wall Street estimates in the fiscal first quarter.
- The U.S. firm now expects 16,500 to 16,700 new orders in Q2.
- Lennar Corp was under 1% up in extended trading on Tuesday.
Lennar Corp (NYSE: LEN) published its financial results for the fiscal first quarter on Tuesday that topped analysts’ estimates for earnings and revenue. The company attributed its hawkish performance to the ongoing COVID-19 crisis that resulted in historically low mortgage rates. The pandemic, Lennar added, also accelerated a shift to suburban living, leading to increased house sales.
Lennar Corp shares were reported less than 1% up in extended trading on Tuesday. Including the price action, the stock is now exchanging hands at £64.47 per share. In comparison, Lennar had started the year at a per-share price of £53.47. Here’s what you need to know about how to choose winning stocks.
Lennar Corp’s Q1 financial results versus analysts’ estimates
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Lennar said that its net earnings in the first quarter came in at £720 million that translates to £2.30 per share. In the comparable quarter of last year, its net earnings stood at a lower £480.66 million, or 91 pence per share. In the prior quarter (Q4), the Miami-based company had noted £650 million of net earnings.
The real estate firm reported £3.82 billion of sales in Q1 versus the year-ago figure of £3.24 billion. According to FactSet, experts had called for £3.67 billion of sales for Lennar Corp in the recent quarter. Their estimate for per-share earnings stood at a lower £1.23 per share.
In separate news from the United States, cybersecurity technology company CrowdStrike Holdings Inc. also published its quarterly earnings report on Tuesday.
Executive Chairman Stuart Miller’s comments on Tuesday
For fiscal Q2, the home construction company now expects 16,500 to 16,700 new orders. Executive Chairman Stuart Miller commented on the financial update on Tuesday and said:
“The housing market has proven to be resilient in the current environment, and we expect it to continue to be a significant driver in the recovery of the overall economy. As we look ahead to our second quarter, we expect to deliver approximately 14,200 – 14,400 homes while we expect homebuilding margins to remain at 25.0% despite rising material and labour costs.”
Lennar Corp performed fairly upbeat in the stock market last year with an annual gain of close to 35%. At the time of writing, Lennar Corp, which used to be the largest home construction company in the U.S. in 2017, is valued at £19.48 billion and has a price to earnings ratio of 11.26.